By GAIL LOWE
By July 26, 2021, the Federal Trade Commission had logged more than 561,000 consumer complaints related to the coronavirus pandemic and stimulus payments. Nearly 75 percent of the complaints involved fraud or identity theft.
All told, these scams have cost consumers more than $505 million with a median loss of $373, according to an AARP article written by John Waggoner and Andy Markowitz.
The FBI ramps up the amount to $1 billion stolen from elderly people all across America since March 2020 as technology and Internet use has dramatically increased among this population. In comparison with figures released in 2019, the amount represents an increase of $300 million.
These dire statistics did not escape the attention of officials at The Savings Bank (TSB), as they recognized the need to keep their elderly customers safe from financial harm.
In June, TSB hosted a free Webinar led by Cheryl A. Cannon, training officer for the bank and former statewide director of the Massachusetts Money Management Program under the Executive Office of Elder Affairs. The Webinar was designed to help customers recognize financial scams and protect their elderly parents from becoming victims.
“The elderly are our loved ones, our parents and our neighbors, and they fall prey to scams disproportionately, with potential loss of money and an even greater emotional toll,” said Bob DiBella, president and chief executive officer of TSB. “The Savings Bank trains our branch employees to look for signs of scams, as many of the elderly hide potential scams from their family to safeguard their independence.”
DiBella continued, “We also believe we can play a role in educating families of the elderly on how to limit the chances of being scammed, how to look for red flags and what to do if you or your family should fall victim.”
In conjunction with Elder Abuse Awareness Month, the Bank released information bulletins to customers before the Webinar launched due to an uptick in local scams such as those aimed at grandparents.
The first question someone might ask is, “What constitutes elder abuse of any kind, including financial?” The answer is simple: Elder abuse is an intentional act or failure to act that causes or creates a risk of harm to an older adult whether it be physical, emotional, sexual, neglect, self-neglect, abandonment or financial. A scam is defined as a dishonest scheme or fraud, and the result can be devastating to an unsuspecting senior citizen.
In the financial sense, a scam is the illegal or improper use of an elder’s resources by a family member, friend, neighbor, acquaintance or stranger. Such use can manifest with promises of goods and services and financial benefits that do not exist, are misrepresented or were never intended to be provided. Some scammers have been successful in emptying bank accounts, stealing identities and ruining credit scores. The population most targeted are those over 60 years old.
In her Power Point presentation, Cannon noted that most elderly people were raised to be polite and are more likely to have a nest egg and be socially isolated, thanks to COVID-19. They also may have cognitive impairment or memory issues. Many elderly are new to the world of technology and may not be well educated on how to protect themselves while accessing the Internet.
Cannon pointed out that scams against the elderly are “crimes of the century” and that one in 10 adults fall victim to a scam every year, with an average $34,000 loss per case. Senior citizens might feel ashamed or fear the loss of independence if they report they have been targeted. Some are uncertain about how to report a scam. Currently, scams involving an impostor, a fraudulent money request from a non-existent grandchild, home repair, sweepstakes, fake checks and telemarketing are sweeping the nation. Other scams involve the promise of a romance or technical support. Phishing is also a popular method designed to steal an elderly person’s identity. Cannon emphasized that the general rule is, “If it sounds too good to be true, it probably is.”
Experts have identified signs that point to the possibility of a scam. The scammer might pretend to be from a known organization or business. He or she might tell a victim there is some kind of problem looming or promise a prize. They also might pressure a victim to act immediately and insist on being paid in a certain way.
Cannon commented that people should trust their intuition when they suspect they are about to be scammed. “They need to ask themselves, ‘Why would I receive this e-mail?’” she said. Other questions to ask include, “Have I done business with this company before?” and, “Did I supply my e-mail address?” Misspellings and typos in an e-mail are also red flags. Perhaps the most compelling is the question, “Am I being offered a lot of money for little to no effort on my part?”
Elderly people need to be alert to the fact that scams exist and that they should resist all pressure to act in haste. They should also know precisely who they are dealing with. They should be especially wary of any requests for money.
People of all ages make mistakes, and it is most important to know how to undo them. If an elderly person suspects in hindsight that they have been possibly scammed, they must act quickly by contacting their bank to report the incident and call their credit card companies to report it. If a Social Security number has been given out, the victim must call the three credit reporting agencies—Experian, TransUnion and Equifax. In these cases, the speed of reporting is of the utmost importance.
Time is on an elderly person’s side when approached by a scammer. They want people to act quickly so they do not have time to think, research or get advice from a trusted source.
On the Bank’s end, tellers and other customer agents are trained to watch for signs of financial exploitation, including large cash withdrawals, an increase in new ATM use and wire transfers. Bank employees are also trained to watch for third party involvement, including the addition of co-signers to accounts and the revelation of a “new friend” helping with an individual’s finances.
On a final note, elderly people can become increasingly confused about financial issues, lack knowledge of accounts and transactions.
In closing, DiBella said, “The safety and security of our customers and our community is of paramount importance to the Bank.”
The Webinar can be viewed at https://www.youtube.com/watch?v=SCk1PUFuEjs. A resource list is provided with this article. Also, the bank maintains a security center on its Web site.